Q&A continues: - Q on how well Fed handled.....>

FED: Q&A continues: 

- Q on how well Fed handled funding crunch, should they have foreseen the crunch

this week?

A: We were well-aware of the tax payments, bond settlement etc... waiting for

that. But response stronger than we expected. Surprised market participants too.

No, not concerned about it. Don't see as having broader implications for broader

economy. We took appropriate actions to address those pressures and they were

successful. In future episodes we have the tools, will not hesitate. Going

forward, will look at question of organic growth of balance sheet, and certainly

at next meeting.

- Q: Re Fed study on impact of trade uncertainty on the economy.

A: Says Fed economists' research not necessarily representative of board...this

research found significant effects, consistent with other research projects, and

the Beige Book. Hard to quantify precisely though.